"Increased Customer Reach of the New Web-Based System Will Result

question 38

Multiple Choice

"Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n) ________ for the company.

• A) recurring cost
• B) intangible cost
• C) tangible benefit
• D) non-recurring cost
• E) intangible benefit

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Definitions:

Substitute Goods

Goods that can be used in place of each other, where the increase in the price of one leads to an increase in the demand for the other.

Cross-Price Elasticity

A metric that measures the responsiveness of the demand for one good to a change in the price of another good.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Pepsi

A global beverage brand known for producing cola and a variety of other soft drinks and products.